The council was informed Geraud was unable to proceed with its acquisition because of recent changes in the finance markets.

Sefton had agreed to sell the facility to Geraud earlier this year in a deal which would have seen a significant investment and refurbishment of the building.

But Geraud were unable to complete its purchase and Sefton Council will now approach other suitable companies who expressed an interest during the tender process.

Geraud’s chief executive, Andrew Burnett, told the Midweek Visiter: “With our long and extensive experience of working with local authorities, we were extremely pleased to have been given the opportunity to regenerate the market.

“We strongly believe the market has an important role to play in the town as an alternative to the traditional high street retailers. It would be a great shame if the council was unable to prevent the market being sold for redevelopment.

“Sadly, on this occasion, recent changes imposed by financial institutions funding the project adversely impacted upon the commercial viability of the scheme, forcing us to withdraw”.

Chief executive of Sefton Council, Graham Haywood, gave his personal commitment to securing the future of the facility as a market and also attracting significant investment to improve the appearance of the market.

He said: “It is very disappointing that circumstances outside our control have led to the loss of this deal which would have been so beneficial for everyone involved in Southport Market Hall.

“Geraud were ready to move forward and they were pleased with the sale terms agreed with Sefton Council.

“I would like to reassure traders and customers that we will do everything possible to find a suitable alternative which will secure the future of the facility for years to come.”

He said: “I have written to the traders this week to bring them up to date on what is happening and I will continue to keep them informed when any further proposals emerge.

“Of course I am also happy to meet with representatives of the traders to discuss any concerns they may have.

“In the meantime I should remind people that the market remains open as usual and is still a popular shopping venue.”